Slide 1

This presentation shows the general guidelines of the decisionprocess in Capstone

2012 Capsim Management Simulations, Inc.

Unforgettable Business Learning Decision Making Process

2012 Capsim Management Simulations, Inc.Main Goal: Adjust products attributes to meet Customer Buying Criteria.Change:SizePerformanceMTBF

Note: Changes in R&D affect:Age of Product (current age/2)Revision Date (date product will be available for sale)CostEnter desired name into a void product spaceChoose:SizePerformanceMTBFPurchase Capacity and Automation in Production pageBuy this year, use it the following yearFor Existing ProductsFor New ProductsStep 1Go to: Decisions R&D

Unforgettable Business Learning Unforgettable Business Learning 2012 Capsim Management Simulations, Inc.Main Goal: Create Price, Promotional Budget, Sales Budget, and Sales Forecast for each productStep 1Go to: Decisions MarketingStep 2Enter Price for each productStep 3Enter Promo Budget & Sales BudgetStep 4Enter your Sales ForecastStep 5Enter Credit Policy (A/R & A/P)Price Use the segment analyses located in the Capstone Courier. A price range will be given in the Customer Buying Criteria.

Promo Budget Directly affects Customer Awareness. Use student guide and your personal strategy to create a budget.

Sales Budget Directly affects Customer Accessibility. Use student guide and your personal strategy to create a budget.

Forecasting Link to Forecasting Info

A/R & A/P Link to Credit Policy Info Tools for setting Price, Budgets, and ForecastsUnforgettable Business Learning Unforgettable Business Learning 2012 Capsim Management Simulations, Inc.Main Goal: To determine schedules, capacity, and automation for each product.Step 1Go to: Decisions Production Enter Production Schedule

Buy or Sell Capacity Buy: Enter (+) number Sell: Enter (-) number

Change automation in: New Autom. Rating box Buy Capacity Buy: Enter (+) number

Choose Automation Level Enter number in New Autom. Rating box

Note: In order to produce a new product, capacity MUST be purchased If 0 inventory Sell all capacity EX: if 1000 capacity, input -1000 in Buy/Sell Capacity

If there is excess inventory Sell all but 1 unit of capacityEX: if 1000 capacity, input -999 in Buy/Sell CapacityFor Existing ProductsFor New ProductsTo Discontinue a ProductUnforgettable Business Learning Unforgettable Business Learning 2012 Capsim Management Simulations, Inc.Main Goal: To finance the companys investments and make sure the cash position is positive at the end of the year.

Three Main Functions: Borrowing Money, Retiring Money, and Issuing DividendsStep 1 Go to: Decisions Finance Issue Long Term Debt: 10-year bonds

Issue Stocks: Selling common stock to the public

Issue Current Debt: Borrow 1-year notes Retire Bonds Early

Retire Stocks

Issuing dividends = giving money to Shareholders.

*Issuing dividends is not mandatory Borrowing MoneyRetiring MoneyDividendsImportant: These numbers are only as good as your FORECASTING. The actual results will most likely be different. Your goal is to be as close to the actual results as possible.Unforgettable Business Learning Unforgettable Business Learning 2012 Capsim Management Simulations, Inc.Go to Online Guide OrHelp > Tutorials & Demos > Optional ModulesOrTeam Member GuideFor Additional Modules:Link to Additional Modules

Unforgettable Business Learning Unforgettable Business Learning Links to Additional Resources 2012 Capsim Management Simulations, Inc.Spreadsheet Video Demonstrations: Student Guide PDFDeveloping a Sales ForecastManager GuideFinanceProductionMarketing Product Invention R&DAdditional Material:Important: To view the spreadsheet demonstrations the Adobe Flash Plug-in is neededUnforgettable Business Learning Unforgettable Business Learning